Contact Australian Ex-50 Fund ARSN: 639 574 708 APIR Code: EVO4741AU MONTHLY UPDATE: MARCH 2020

FUND OVERVIEW FUND DESCRIPTION Portfolio Managers Will Culbert and Tom Millner The Contact Australian Ex-50 Fund (the Fund) balances growth and Benchmark S&P/ASX Midcap 50 Accumulation Index income to provide access to a concentrated portfolio of quality Australian companies that sit outside the S&P/ASX 50 Index. This Fund size $0.4 million strategy seeks to find long term investments in tomorrow’s leaders. Number of stocks 21 The Fund seeks to achieve strong relative returns in excess of the benchmark, through a concentrated portfolio of high quality small to NAV Unit Price $0.9923 medium sized ASX listed companies. Management Fee* 0.75% per annum (excluding GST) The Fund is managed by Contact Asset Management, which is a research driven, active equities manager, investing for the long term. Performance Fee* 15% (excluding GST). No Performance We seek profitable, well-managed companies that offer a sustainable Fee is payable for any period in which yield and are attractively priced. the total return of the Fund is less than the Benchmark return or the total return of the Fund is negative.

Since Performance for periods ending 31 March 2020 1 Month# 3 Months 6 Months 1 Year Inception# Contact Australian Ex-50 Fund (1.0)% ─ ─ ─ (1.0)% S&P/ASX Midcap 50 Accumulation Index (2.3)% ─ ─ ─ (2.3)% Relative Performance +1.3% ─ ─ ─ +1.3%

Performance is reported net of all fees. Past performance is not a reliable indicator of future returns. # Inception date is 17 March 2020.

PERFORMANCE COMMENTARY The Contact Australian Ex-50 Fund was established in March 2020 and out the other side. Markets reacted positively and the benchmark index we are delighted to share our inaugural Monthly Report with investors. increased by 15% in the final week of March. While we appreciate this is a volatile period in the Australian stock We are buoyed by early signs of success in Australia and it appears that market and broader economy, we believe this is an opportune time to the Government is doing the best job possible at addressing the launch the Fund. Since its peak in mid-February to launch date, the healthcare crisis without destroying the economy. The stimulus S&P/ASX Midcap 50 Index dropped by almost 40%. We believe there measures, particularly the JobKeeper initiative, have prevented an are now several opportunities to begin buying high quality, income explosion in unemployment. We believe the recovery will take time; yet producing businesses managed by capable people. the unprecedented size of the fiscal and monetary stimulus will boost COVID-19 dominated headlines in March. The initial concern by the prospects of many businesses. investors in late February turned to panic in early March as the For now, while uncertainty persists, we think it prudent to maintain a outbreak spread rapidly outside China and showed little signs of higher proportion of cash than typical. We continue to believe that this abating. Government enforced restrictions and lockdowns were is a market where individual stock selection is paramount. We want a imposed across the globe. Singapore’s Minister for National war chest to take advantage of opportunities. Some businesses are Development summed up the complexity of the decisions facing all more vulnerable than others, yet many good quality companies are governments succinctly, noting “The challenge is that the more we do caught up in the indiscriminate selling. There is heightened emotion in to flatten the infection curve, we are actually also steepening the markets currently and we welcome the opportunity to buy stocks at recession curve because as we do more of these measures, the right attractive prices as we intend to own them for the long-term. measures, to save lives ... economic activity will be reduced and it will The Fund is well positioned with a portfolio of profitable companies increase the risk of an economic downturn.” with attractive returns on capital that are appropriately leveraged. We In the second half of March, Governments and Central Banks materially believe that now, more than ever, is the time to own well capitalised increased the response. In Australia, the RBA cut rates twice in March businesses run by management teams with talent and integrity. with the cash rate now at a record low 0.25%. The Morrison We have seeded the Fund with capital from Contact Asset Government has already injected more stimulus measures into the Management and from the Portfolio Managers – we consider economy than we saw during the entire GFC. The aim is to put the alignment to be important. Our intention is to selectively deploy more Australian economy into hibernation and help it recover once we come capital into the fund over the coming months.

MONTHLY UPDATE: MARCH 2020

PORTFOLIO CHARACTERISTICS MAJOR HOLDINGS % OF PORTFOLIO Sector exposure 1 Resmed Inc. 5.9% Active Sector Exposure vs S&P/ASX Midcap 50 2 TPG Telecom 5.7%

Cash 33% 3 A2 Milk Company 5.4% Real Estate 5% Communication Services 1% 4 Magellan Financial Group 4.7% Health Care 1% 5 Breville Group 4.7% Consumer Staples 1% Financials 0% 6 EQT Holdings 4.3% Consumer Discretionary -1% Utilities -3% 7 Northern Star Resources 4.3% Energy -6% Information Technology -7% 8 Charter Hall Group 3.9% Industrials -9% Materials -15% 9 Reece Limited 3.8% 10 IPH Limited 3.8%

11 Iress Limited 3.6% Capitalisation exposure 12 BWP Trust 3.1% 13 ARB Corporation 3.1%

Mid Cap 31.8% 14 Holdings 2.5% (50-100) 15 Platinum Asset Management 2.3% 16 Invocare Limited 2.0% Small Cap 38.4% (ex Top 100) 17 REA Group 1.8% 18 Cedar Woods Property 1.1% 19 Regis Healthcare 0.5% Cash 32.6% 20 Evans Dixon Limited 0.5% Cash and Cash Equivalents 32.6%

Total of Top 20 and Cash 99.7%

CONTRIBUTION TO RETURN – MARCH 2020 Company Name Contribution Company Name Detraction Breville Group 104 bps Invocare Limited -84 bps Magellan Financial Group 70 bps ARB Corp Limited -50 bps BWP Trust 36 bps Reece Limited -44 bps Regis Healthcare Limited 30 bps EQT Holdings Limited -42 bps Iress Limited 19 bps REA Group Limited -25 bps

The Contact Australian Ex-50 Fund Product Disclosure Statement (PDS), Reference Guide and Investor Handbook is available at https://contactam.com.au/ex-50-fund-overview/

* Management fee* 0.75% per annum (excluding GST) of the net asset value of the Fund (after any current accrued Management Fees and expenses, but before any Performance Fee accrual for the relevant period). Performance fee 15% (excluding GST) of the total return of the Fund (after deduction of Management Fees and expenses) that is in excess of the return of the Benchmark during a relevant performance period (or part period where), and provided any underperformance from previous periods has been recovered. No Performance Fee is payable for any period in which the total return of the Fund is less than the Benchmark return or the total return of the Fund is negative. The material contained within this Report (The Report) has been prepared by Contact Asset Management Pty Limited (ABN 54 614 316 595, AFSL 494045)(Contact). It is issued by the Responsible Entity of the Fund, Evolution Trustees Limited (ABN 29 611 839 519, AFSL 486217)(Evolution). Figures referred to in The Report are unaudited. The Report is not intended to provide advice to investors or take into account an individual’s financial circumstances or investment objectives. This is general investment advice only and does not constitute advice to any person. Neither Evolution nor Contact guarantee repayment of capital or any particular rate of return from the Fund. Neither Evolution nor Contact gives any representation or warranty as to the reliability, completeness or accuracy of the information contained in this Report. Investors should consult their financial adviser in relation to any material within this document. Past performance is not a reliable indicator of future performance. Investors should consider the PDS and Reference Guide and any other material published by Contact or Evolution in deciding whether to acquire units in the Fund. This information is available at www.contactam.com.au